Orlen Spolka Akcyjna · GPW:PKN

Orlen Spolka Akcyjna — Polskie Górnictwo Naftowe i Gazownictwo SA (PGNiG) — Q1 2017 Earnings Presentation

20 slides from Orlen Spolka Akcyjna's earnings presentation, May 25, 2017

  1. Slide 1: PGNiG Group Q1 2017 Results

    Polskie Górnictwo Naftowe i Gazownictwo SA PGNiG Group Q1 2017 Results May 25th 2017

  2. Slide 2: Changes in segments presentation

    Changes in segments presentation 2

  3. Slide 3: Changes in segments (1/4)

    Changes in segments (1/4) Exploration Trade Distribution Generation Other segments and Production and Storage no changes no changes New settlement price for gas from domestic production Corporate center Exploration Trade Distribution Generation Other segments and Production and Storage 3

  4. Slide 4: Changes in segments (2/4)

    Changes in segments (2/4) 1 The settlement price methodology 2 Separation of corporate centre 3 Operating expenses – other positions Transfer of gas from the The PGNiG Management Board In addition, reclassifications were Exploration and Production resolved to adjust the financial also made between o

  5. Slide 5: Effects of changes [EBITDA 2016 in PLNm] (3/4)

    Effects of changes [EBITDA 2016 in PLNm] (3/4) Previous method of reporting Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Exploration & Production 619 (123) 494 295 - Trade & Storage 660 110 (8) 648 - Distribution 758 665 542 594 - Generation 362 88 110 199 - Other segments (10) (5) (6) (40) - Reconciliat

  6. Slide 6: Effects of changes [EBITDA 2016 in PLNm] (4/4)

    Effects of changes [EBITDA 2016 in PLNm] (4/4)* 1000 800 879 758 758 Q1 1000 800 Q2 660 665 665 619 600 600 423 400 362 362 400 200 200 110 88 88 17 8 0 0 -10 -33 -123 -5 -43 -200 -200 Exploration & Trade & Storage Distribution Generation Other Segments Exploration & Trade & Storage Distribution Gen

  7. Slide 7: Table of contents

    Table of contents 1. Performance drivers 2. Financial highlights Q1 2017 3. Segments – EBITDA in Q1 2017 4. Segments Exploration & Production Trade & Storage Distribution Generation 5. Appendices 7

  8. Slide 8: Performance drivers

    Performance drivers Stronger USD against PLN y/y, 3-month average crude oil Revenue growth attributable stable EUR against PLN y/y price up 57% y/y in Q1 2017 PLN USD/bbl to rising crude prices and 4,5 4.32 120 higher volumes of gas sold 4.36 -1% 100 4,3 4.06 80 +2.5% 4,0 3.96 60 54.0 51.8 -9% 3,8 4

  9. Slide 9: Financial highlights Q1 2017

    Financial highlights Q1 2017 PGNiG Group's EBITDA by segment in Q1 2017 vs Q1 2016 [PLNm] Q1 2016 Q1 2017 % PLNm Revenue 10 980 11 652 6% 1 376 Operating expenses (excl. D&A) (8 587) (8 883) 3% 879 EBITDA 2 393 2 769 16% 758 692 Depreciation and amortisation (672) (695) (3%) 423 358 362 409 expense

  10. Slide 10: Segments – Exploration and Production

    Segments – Exploration and Production [PLNm] Q1 2016 Q1 2017 % Revenue growth driven by oil prices Revenue 1 351 1 851 37% Operating expenses (excl. D&A) (472) (475) (1%) Comments: Revenue from sales of crude oil and EBITDA 879 1 376 57% condensate up PLN 242m y/y, with oil prices in PLN up by almos

  11. Slide 11: Segments – Trade and Storage

    Segments – Trade and Storage [PLNm] Q1 2016 Q1 2017 % Revenue growth due to increase in volumes and lower Revenue 9 620 9 932 3% gas market prices. Operating expenses (excl. D&A) (9 197) (9 574) (4%) EBITDA 423 358 (15%) Comments: Revenue from sales of gas up by PLN 439m Depreciation and amortisatio

  12. Slide 12: Segments – Distribution

    Segments – Distribution [PLNm] Q1 2016 Q1 2017 % Segment's performance affected by higher gas Revenue 1 397 1 469 5% distribution volumes Operating expenses (excl. D&A) (639) (777) (22%) alongside higher operating expenses EBITDA 758 692 (9%) Comments: Depreciation and amortisation expense (225) (23

  13. Slide 13: Segments – Generation

    Segments – Generation [PLNm] Q1 2016 Q1 2017 % Segment's performance buoyed by acquisitions of Revenue 742 859 16% PEC and SEJ and increased Operating expenses (excl. D&A) (380) (450) (18%) heat sales volumes EBITDA 362 409 13% Comments: Revenue from sales of heat up by 10% y/y, Depreciation and amo

  14. Slide 14: Contact details

    Contact details Aleksandra Dobosiewicz More information Deputy Head of the Economic Department Head of the Investor Relations Division Phone: +48 22 589 46 71 Mobile: +48 665 004 847 Fax: +48 22 691 81 23 Email: aleksandra.dobosiewicz@pgnig.pl Marcin Piechota Senior Investor Relations Specialist Pho

  15. Slide 15: Appendices

    Appendices 1. Sales and gas imports structure 2. Operating expenses 3. Debt and sources of funding 4. Statement of financial position, statement of cash flows, financial ratios and headcount 5. Production and sales volumes 15

  16. Slide 16: Sales and gas imports structure

    Sales and gas imports structure Poland's gas imports structure in Q1 2017 vs Q1 2016 Significant share of LNG in Q1 2017 gas imports in Q1 2017. LNG 12% Western and southern PGNiG Group gas sales direction 2% volumes up 0.9 bcm y/y in Q1 4% 2017, especially to industrial Q1 2016 customers (wholesale

  17. Slide 17: Higher operating expenses in Q1 2017

    Higher operating expenses in Q1 2017 [PLNm] Q1 2016 Q1 2017 % Higher regasification costs and royalty rates offset by lower gas Fuels for heat and power generation (282) (293) 4% procurement costs. Other raw materials and consumables used (361) (351) (3%) Employee benefits expense (545) (642) 18% Tr

  18. Slide 18: Debt and sources of funding

    Debt and sources of funding Comments: Sources of funding (as at March 31st 2017) PLNm On February 13th 2017, PGNiG made a timely 10 000 repayment of a loan from PGNiG Finance AB available used of EUR 500m along with interest. On February 8 000 14th 2017, PGNiG Finance AB redeemed Eurobonds with a no

  19. Slide 19: Statement of financial position, statement of cash flows, financial ratios and headcount

    Statement of financial position, statement of cash flows, financial ratios and headcount Group’s statement of financial position Headcount (at date) (as at March 31st 2017) thousand PLNm Non-current Current Equity 40 Other segments Generation Distribution Trade & Storage Exploration & Production 32,

  20. Slide 20: Production and sales volumes

    Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q1 2017 FY 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 FY 2015 Q4 2015 Q3 2015 Q2 2015 Q1 2015 HIGH-METHANE GAS (E) 474 1 918 473 450 487 509 2 027 504 515 507 501 including in Poland 328 1 401 347 346 349 359 1 454 366 359 362 367 incl

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